Why Borrowers May Choose a Private Mortgage
Why Borrowers May Choose a Private Mortgage
A private mortgage is a loan offered by private lenders to individuals who fail to qualify for a traditional lender loan because of a poor credit score. When buying a house, most individuals do research and list down local banks and mortgage lenders and start comparing them to see which one offers the best financing options. However, the sad reality is that not many people who dream of buying a home qualify for a mortgage from these traditional lending institutions. This is where a private mortgage is of great help; it fills a gap in the lending market, being a saviour for individuals whose mortgage applications have been rejected by banks.
Below-mentioned is some of the reasons why as a borrower, you should choose a private mortgage:
You can easily qualify for a mortgage
For a few individuals qualifying for a mortgage from a traditional lender like a bank or credit union is difficult because of their financial situation or bad credit score. If you are a self-employed professional but do not have a stable income, and cannot provide adequate proof, or as mentioned above, you have a poor credit score, it is highly unlikely that your application will be rejected. Private lenders are not worried about your credit score or financial situation, as they will provide you with the funds to purchase your dream home as long as they see value in the deal.
A hassle-free and shorter approval process
Traditional lenders like banks usually follow a strict filing process when it comes to processing mortgage loans, which can be stressful and time-consuming. On the other hand, private lenders are not hit by the strict federal banking regulations allowing them to not deal with any red tape. So, getting a mortgage from a private lender is far quicker than getting it from a bank. If you previously worked with a private mortgage lender, getting a loan will be even faster. Keep this in mind; if a real estate broker offers you a deal on a property that enables you to act swiftly, you should consider getting a private mortgage.
Larger down payment amount
Banks and other traditional mortgage lenders like credit unions etc., will not finance the entire amount when you are buying your house. You will be required to finance a certain portion of the money from a different source to make a down payment on the property. For example, a bank will ask you to pay at least 20% of the property price to be eligible to receive a loan. It is absolutely not required for a private mortgage as some private mortgage brokers even provide 100% of the funds for you to buy your dream home.
Conclusion
If you are searching for an ideal way to finance purchasing your home, a private mortgage is a best-suited option. Borrowing money from a private lender ensures you don’t have to wait a long time or fill a lot of paperwork to receive the funds. If you are looking for the best private mortgage broker in Oshawa, give 1OneFund Capital a call today at 1-833-201-(3863) to schedule an appointment.